India's largest coal handling agency - Mjunction

CORPORATEAdani bags coal block developmentrights in OrissaCoal Insights BureauThe country's largestimporter of coal, AdaniEnterprises, has baggedthe rights to develop a coal blockin Orissa, which has estimatedreserves of 1.6 billion tons.The diversified conglomeratewill also develop a 2000-MWcapacity power plant as part of itsdeal with the PSU consortium thatselected the billionaire GautamGautam AdaniAdani-led company, as MineChairman, Adani GroupDeveloper and Operator (MDO)for the Chendipada coal block."Adani has been selected as the MDO for developmentand operation of the Chendipada coal block in Orissa throughglobal competitive bidding," the diversified group said in arecent statement.The block has estimated reserves of 1.6 billion tons andan annual production capacity of 40 million tons per annum(mtpa)."Coal production will commence within 42 to 48 months'time from these mines. This coal will be used as fuel by variousthermal power stations in Maharashtra, Uttar Pradesh,Rajasthan and Chhattisgarh," it said.The coal ministry had allotted the block in the Talchercoalfield, Orissa, jointly to Uttar Pradesh Rajya VidyutUtpadan Nigam Limited (UPRVUNL), Chhattisgarh MineralDevelopment Corporation (CMDC) and Maharashtra StatePower Generation Company (Mahagenco) for captive miningof coal."A joint venture company, UCM Coal Company Ltd (UCM),has been formed by UPRVUNL, CMDC and Mahagencofor development and mining ofthe Chendipada coal block," thecompany said, adding that the JVcompany had invited global bidsto develop the reserves. Financialdetails of the deal could not beimmediately ascertained. As partof the deal, Adani will undertakedevelopment and operation of thecoal block, it said."(The work) includes landacquisition, R&R, preparation ofmine plan, approvals and clearances, coal mining, setting upof coal washery, establish railway siding and deliver washedcoal to end-users at the designated power stations in UP,Chhattisgarh and Maharashtra," the statement added.Adani is also required to set-up a power generation projectof about 2000-MW capacity as part of the deal with UCM.Adani will hold an 89 percent stake in the power project, whilethe remaining will stay with the PSU consortium.Adani Enterprises, which is the largest coal importer inIndia, is expanding its domestic base aggressively through theMDO business model."In the recent past, Adani group has already woncompetitive bidding tenders as MDO for total mining capacityof 70 mtpa of Mahaguj Collieries, Rajasthan Rajya VidyutUtpadan Nigam and Chhattisgarh State Power GenerationCo for various coal blocks in Orissa and Chhattisgarh," itadded.Adani Enterprises further said that with the latest deal, itwill have 110 mtpa of coal mining contracts in India, "whichwill make it one of the largest mining companies in the privatesector."COAL INSIGHTS 49 November 2010